The looser underwriting standards Redwood Trust rolled out earlier this year for jumbo mortgages are aimed at aggregating loans that banks won’t necessarily acquire, according to officials at the real estate investment trust. Redwood introduced its “Choice” program in April, allowing for credit scores as low as 661, debt-to-income ratios as high as 49.99 percent and combined loan-to-value ratios up to 90.0 percent. The characteristics aren’t all allowed on the same loan. For a ...

A number of non-agency lenders are looking to originate mortgages for investment properties using a debt-to-income ratio based on income from the property rather than the borrower’s income, according to Moody’s Investors Service. “Using property DTI underwriting on loans secured by single investment properties introduces risks stemming from the lack of visibility on a borrower’s other debt obligations relative to a steady source of income that lenders can ...

Ocwen Financial failed two metrics under the national mortgage settlement involving force-placed insurance, according to a report this week by the settlement’s monitor. The failures related to activity in the fourth quarter of 2015. The servicer had a 24.2 percent error rate on the timeliness of force-placed insurance notices, well above the 5.0 percent error rate allowed under the settlement. Ocwen said most of the errors were attributable to the implementation of a new ...

A $6.20 billion portfolio backed largely by jumbo mortgages originated in recent years was sold last week, according to Interactive Data. The portfolio appears to have been sold by Premium Point Investments, though the hedge fund wouldn’t confirm that. Premium Point backed WinWater Home Mortgage, which stopped issuing jumbo mortgage-backed securities earlier this year. Impac Mortgage Holdings announced this week an offering of 2.5 million shares ... [Includes two briefs]

Ocwen had a 24.2 percent error rate on a metric involving the timeliness of force-placed insurance notices, well above the 5.0 percent error rate allowed under the settlement…

More legal headaches for Ocwen? Looks that way...

Almost 53 percent of the loans in the bond are non-qualified mortgages and many of the rest are higher-priced QMs…

FBR & Co. raised its estimate on residential loan production for 2016: $1.90 trillion for 2016...

Kingstown is known as a value-oriented hedge fund, with roughly $1.5 billion of assets under management.

Although the new requirements could prompt an increase in costs, analysts said a new requirement aimed at increasing the number of times troubled borrowers are evaluated for loss mitigation will be particularly helpful in certain states…